A weekend topic starting with Danielle DiMartino Booth at Bloomberg. "The Covid-19 pandemic arrested the plans of millions of Americans to purchase a home. But what if you lock someone down in a home they had already mentally moved out of? Might they pour their energy into touring homes online to produce a short list of targets? And might they get preapproved for a mortgage so it's a simple matter of income verification once the economy reopened and they'd submitted an offer on a home?"

"Of course they would, which helps explain the huge surge in the Mortgage Bankers Association of America's index tracking applications for loans to buy homes. That gauge has risen for nine straight weeks to reach its highest level since the start of 2009, which defies logic when you consider that more than 44 million Americans have filed for unemployment benefits since mid-March. No doubt that some of this is tied to the minor exodus from densely populated cities. After all, long commutes are less of an issue now that we've seen the efficacy of working from home play out in real time."

"But don't let mortgage applications fool you. Entering into a deal to buy a home now could prove unwise. Much of the real estate market remains in a deep freeze, with listings down nationwide and borrowers struggling to meet debt payments. Black Knight Inc. reports that 4.73 million mortgages, or 8.9 per cent nationwide, are in forbearance. 'During the Great Recession, it took more than two years for the national delinquency rate to increase by the 3.1 per cent seen in April 2020 alone,' Black Knight noted in a report."

"Fresh data from the Federal Reserve showed that Americans' net worth fell by a record $6.55 trillion in the first quarter to $100.8 trillion, the largest drop in records back to 1952. Lenders know all this. Which explains why the MBA's Mortgage Credit Availability Index has tumbled to a six-year low. Tighter lending standards applied at both ends of the spectrum, from first-time buyers to conforming and non-conforming jumbo loans."

"The smart and patient buyers see what's happening. They know to wait until forbearance expires and increasingly tight mortgage lending standards wash out the eager but unqualified. They know that the pent-up demand will be satisfied and that the artificial dearth of supply will become robust, which will pressure prices lower."

From The M Report. "According to a survey by Lending Tree, nearly 70% of home sellers responded that they would be willing to accept a lower offer than the original asking price for their properties. Although there has been a recent revival in the housing market, with bidding wars among hopeful buyers heating up, the survey results show that sellers are feeling the financial pressure from COVID-19."

"Sellers seem to have been shaken by the pandemic, making them unwilling to risk not selling their homes amid such uncertain times, and therefore, willing to take what they can get in order to move their properties and pocket some cash. In fact, an overwhelming majority of nearly 90% of 1,000 total survey respondents admitted that they were often consumed with fear that their homes wouldn’t sell."

"The demographics of the survey respondents most worried about selling was also telling. According to Lending Tree, those more apt to accept lower bids belonged to the millennial set (78%), followed closely by Gen Xers (67%), and then baby boomers (55%). On the opposite side of the spectrum, one-third of the respondents divulged that their biggest worry was more that they would be forced to accept lesser bids than what their properties were worth."

"LendingTree’s Chief Economist Tendayi Kapfidze offered insights on home seller anxiety, pointing to the fact that their concern—and their exercising caution—may be wise: 'Although it may seem like the housing market has shrugged off COVID-19, as home sales show signs of recovering, it may prove a false dawn. The detrimental impact on jobs and, by extension, wages, will be significant and long-lasting. Demand will soften in the housing market, and sellers will likely need to make some concessions to reach the signing table.'"

From WPTV in Florida. "A new study suggests that the coronavirus pandemic could lead to a foreclosure spike in South Florida. Lynda Charles, Vice President of Housing Services, Community Partners, and the rest of their team at the nonprofit Community Partners of South Florida are working overtime to help people stay in their homes. A new report by real estate data analytics firm Black Knight shows in May, Florida was the 5 highest state where homeowners either could not or did not make their mortgage payments."

"Mike Pike, who specializes in business litigation said having your paperwork in order is key if you end up having to fight to keep your home. 'I believe that there is going to be some sort of bubble burst in the real estate market,' Pike said. 'Your most current tax returns, an updated financial affidavit, we need to know where you were employed, if you’re still employed, if your job has reduced your hours. Things of that sort.'"

"'It was a tight market, to begin with, COVID-19 exposed the difficulties of residents in Palm Beach County to access affordable homes,' said Charles."

The Los Angeles Times in California. "If you’re feeling cramped in L.A., here are homes with more than 4,000 square feet on the market for roughly $750,000 in Lake Arrowhead, Oak Hills and Fontana in San Bernardino County. Lake Arrowhead: Amenities in this price-reduced retreat include a vintage movie theater, sauna, wine cellar and a garden with a stream and koi pond.In the 92352 ZIP Code, based on 29 sales, the median price for single-family homes in May was $390,000, down 8.6% year over year, according to CoreLogic."

"In the 92344 ZIP Code, based on 24 sales, the median price for single-family homes in May was $318,000, down 3.8% year over year, according to CoreLogic. In the 92336 ZIP Code, based on 52 sales, the median price for single-family homes in May was $483,000, up 2.7% year over year."